Oil prices rose today over supply fears as diplomatic relations between Ukraine and Russia deteriorate.
However, gains were restricted as traders await US non-farm payroll data for a further indication of the country’s economic strength.
Brent crude was up by 37 cents to hit $108.47 a barrel, while US oil rose by 34 cents to settle at $101.90 a barrel, reported Reuters.
Global markets were rattled earlier by the news of Russian military intervention on the Crimean peninsula, which pushed up oil prices, but the benchmarks slipped by more than $5 subsequently as the risk of war faded.
Worries over the conflict in Ukraine returned following the Crimean parliament’s move to allow the region to become part of Russia. A referendum on the status is due for 16 March.
The US has placed sanctions on Russia with American assets responsible for Moscow’s military intervention in Ukraine.
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Investors are now waiting for US payroll data, which will be released later today.
The private sector added 149,000 additional jobs in February, in comparison with the weather-depressed gains of 113,000 in January and 75,000 in December, according to a Reuters survey.
US jobless claims hit a three-month low last week in a positive sign for the labour market, while manufacturing activity slowed in January indicating a potential fall in energy demand.
In addition, the outlook for oil demand is weak as the US refineries are set to undergo maintenance.
Image: Supply fears underpin oil prices. Photo: courtesy of supakitmod at FreeDigitalPhotos.net.